Bill Dudley Says Fed Won't Make QT Mistakes 'This Time'

The video discusses the Federal Reserve's approach to managing its balance sheet and avoiding past mistakes. It highlights the Fed's experience from 2019, the implementation of a standing repo facility, and strategies for tapering asset runoff. The Fed aims to prevent a scarcity of reserves by learning from previous errors and adjusting its policies accordingly.

Why is it important for the Fed to slow the rate of asset runoff?

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What does the phrase 'belt and suspenders' refer to in the context of the Fed's current strategy?

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